‘Well-Timed’ OPEC Talk Forces Oil Bears Into Record Reversal
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OPEC has done it again.
Talk of a potential deal to freeze output helped push oil close to $50 a barrel and prompted money managers to cut bets on falling prices by the most ever. West Texas Intermediate, the U.S. benchmark, went from a bear to a bull market in less than three weeks.
OPEC is on course to agree to a production freeze because its biggest members are pumping flat-out, said Chakib Khelil, the group’s former president. Saudi Energy Minister Khalid Al-Falih said that the talks may lead to action to stabilize the market.
«This is all courtesy of some very well-timed comments from the Saudi oil minister,» said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. «They’ve been successful over the last year in jawboning the market, and this is the latest example.»
